Indusiella was originally described as a monotypic genus characterized by having upper leaf laminae bistratose in cross section and spirally inrolled above the sheathing base, large, campanulate calyptrae that are deeply and longitudinally plicate, covering most of the capsule, and by the peristome teeth lanceolate, densely papillose and irregularly divided into 2–3 filiform segments in upper part. Delgadillo (1976) added a second species, Indusiella andersonii Delgadillo from Chad, northern Africa. The third species of the genus was made by Churchill (1981), who transferred Coscinodontella bryanii Williams to this genus. However, Murray (1984) synonymized Indusiellaandersonii with I. thianschanica and excluded I. bryanii (Williams) Churchill from the genus. Indusiella, therefore, remains a unique monotypic genus. The description of the genus is the same as that of the species.

The first report of Indusiella thianschanica Broth. & C. Müll. in China was made by Z.-G. Tong (1963) from Nei Mongol. Later, T. Cao and C. Gao (1985) reported it from Xizang. The distribution of this species now extends from Nei Mongol, Qinghai, Xinjiang, and Xizang (T. Cao et al. 1998a).